Offshore drilling contractor Transocean has secured a job worth $137 million for its Transocean Equinox in Australia. The deal with a “major operator” includes five wells, with the price tag excluding full payment for mobilization and a demobilization fee.
The company said in its statement that the estimated 300-day contract is expected to commence in the first quarter of 2024. The contract also provides for a one-well option, potentially keeping the harsh environment semisubmersible in Australia through the first quarter of 2025.
The deal follows the company’s first quarter loss of $465 million, which was heavily impacted by $190 million losses on assets disposal and debt retirement. After consideration of these net unfavorable items, first quarter 2023 adjusted net loss was $275 million.
Contract drilling revenues for the three months ended March 31, 2023, increased sequentially by $43 million to $649 million, primarily due to increased activity for rigs that returned to work after being idle in the fourth quarter and increased day rate for two rigs, partially offset by two fewer calendar days in the first quarter, the company’s report reads.
Speaking of the results, Chief Executive Officer Jeremy Thigpen noted that the company “delivered an outstanding quarter of safe, reliable and efficient operations, with an adjusted EBITDA margin of 33 percent on adjusted revenues of $667 million”.
“The strong performance is the result of excellent revenue efficiency of nearly 98 percent and exemplifies our commitment to operational excellence,” he said. “Additionally, the contracts we secured during the quarter, which were predominantly for our harsh environment fleet, complement the wave of ultra-deepwater fixtures we announced over the last several quarters, providing further evidence of a broad, sustained upcycle.”
It is worth reminding that Transocean is venturing into offshore wind foundation installation activities through a joint operation with Eneti. The two companies have executed a non-binding memorandum of understanding that would see them form a joint venture in order to explore the opportunities in the sector.
The formation of the joint venture remains subject to the successful negotiation and execution of definitive agreements.
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